How do shareholders fare for different levels of synergies? If synergies are higher than the acquisition premium, both buyer and target shareholders will be harmed by the deal. If synergies lie between the downside protection and the acquisition premium buyer shareholders will benefit, while target shareholders will be harmed. Target shareholders will benefit, while buyer shareholders will be harmed, if synergies lie between the downside protection and the acquisition premium. Both buyer and target shareholders benefit if synergies turn out to be less